Beetaloo Energy Australia has tapped one of the nation’s biggest gas infrastructure players to map out a 750-kilometre pipeline that could become the critical midstream link between its Carpentaria shale gas project and its ambitious Beetaloo Digital development near Darwin.
Under a non-binding memorandum of understanding (MOU), Australian Gas Infrastructure Group (AGIG) intends to lead the design and planning of the pipeline and associated infrastructure needed to connect Carpentaria with future demand centres around Darwin.
The pipeline is intended to sit within the Northern Territory Government’s Territory Energy Link common-user infrastructure corridor, which Beetaloo believes could streamline approvals and development.
At one end sits more than 1.6 trillion cubic feet of gas (Tcf) in previously reported 2C contingent resources. At the other, Beetaloo has secured NT Government exclusivity over 185 hectares at its Waddell site for Beetaloo Digital, its wholly owned subsidiary developing a proposed vertically integrated gas-to-power AI data centre campus.
Beetaloo’s footprint stretches across 28.9 million acres in the McArthur and Beetaloo sub-basins, including 80 per cent of the Eastern depositional Trough of the McArthur Basin. The company describes the trough as having enormous conventional and unconventional hydrocarbon potential. At the same time, industry activity is ramping up to appraise discoveries across the wider basin.
AGIG brings serious infrastructure muscle to the party. It owns and operates more than 40,000km of gas pipelines serving more than 2.1 million customers, as well as gas storage infrastructure. It can also finance, build, own, operate and maintain major gas transmission infrastructure.
Craig de Laine, chief executive of AGIG, said the basin could play an important role in the Territory’s future, with the group looking to develop practical infrastructure solutions to support that opportunity and long-term growth.
The latest deal brings a second industry heavyweight into Beetaloo’s corner, following its recent collaboration with global oilfield services group Halliburton. Halliburton brings upstream development expertise and exposure to modular gas-fired power through its partnership with US distributed power specialist VoltaGrid, while AGIG potentially fills the midstream gap.
The parties will jointly assess the gas transport, processing and other facilities required to support Beetaloo Digital, ultimately targeting a future final investment decision.
Beetaloo Energy Australia managing director Alex Underwood said: "Together we will assess the infrastructure required to connect our gas resources with the proposed development and continue progressing the integrated project towards future commercialisation."
The immediate next step is to develop an integrated project plan. The MOU does not commit either party to a future transaction. Any development also remains subject to technical studies, commercial agreements, regulatory approvals and relevant board approvals.
Carpentaria provides the upstream starting point for that bigger ambition and is already moving towards initial production. Flagship C-5H previously averaged 6.9 terajoules (TJ) per day during a 30-day production test, while the initial gas plant is designed for 25TJ/d. The development is intended to establish an early production base from which Beetaloo can progressively scale its shale gas resources as demand grows.
With its hyperscale AI data centre campus taking centre stage at Waddell, Beetaloo Digital could provide Carpentaria with an enormous new market. Beetaloo has previously estimated one gigawatt of computing capacity could consume up to 200TJ/d – eight times the initial Carpentaria plant capacity – while its broader concept envisages up to 2GW across two campuses. Management believes that scale of around-the-clock demand could help drive development of its vast gas resource over time.
Beetaloo says the gas delivered from Carpentaria could provide the firm power to underpin the development. Down the track, solar and batteries could shoulder more of the load, while surplus generation could also feed into the Territory's grid.
Waddell has geography firmly in its favour. The site sits near the proposed Darwin Energy Hub and close to Darwin’s subsea fibre-optic infrastructure, while Darwin is little more than 25 milliseconds in data-transfer time from major Southeast Asian markets.
With a commanding resource footprint, control of the Waddell opportunity and heavyweights Halliburton and AGIG in the tent, Beetaloo is assembling a formidable gas-to-digital chain. If the 750km pipeline gets the green light, it could become the steel artery connecting its basin-scale gas with a potentially enormous new AI-energy market near Darwin.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Penny Taylor
